Go to Jeff Salisbury LWGate Home Page.From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] MicroCaps
Date: Thu, 21 Mar 2002 13:22:13 -0800
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Its JMHO, but rather than a high RS, you might consider looking for lack of meaningful resistance. If a stock has been flat-lining, but is still within 20% of its high, and its relative valuation is low, volume will make it start climbing even faster than stocks that have a high RS.
If M has been in a prolonged, broad-based decline, all these stocks will have a high RS anyhow. But, M bottmed out quite a long time ago now, and there have been a lot of stocks climbing since 10/01/01 - so I periodically see a nice flat base with an RS between 60 and 80.
Also, with microcaps, you get fabulous volume clues as to when a big rise might start. If the last 4 days of volume have been 300%+ of the 50-day average before the volume kicked in, then you want to take a really close look at the fundies, outlook, and relative peer-group valuation.
Ian
- ----- Original Message -----
From: Gene Ricci
To: canslim@lists.xmission.com
Sent: Wednesday, March 20, 2002 9:45 PM
Subject: Re: [CANSLIM] MicroCaps
Tom, I set the following scan in DGO and uncovered 73 gems, was totally surprised at how high the EPS & RS ratings are. Thanks for your help, just what the doctor ordered.
Gene
Earnings Per Share (EPS) Rating Greater than or equal to: 50
Relative Price Strength (RS) Rating Greater than or equal to: 80
% of Stock Owned by Mutual Funds Less than or equal to: 10
Current Price From 2.000 to 20.000
Current 50-Day Average Volume(1000) From 1 to 500
ROE (Latest Fiscal Year Reported) Greater than or equal to: 10
Current Trailing 12 Month P/E From 1 to 100
----- Original Message -----
From: Tom Worley
To: canslim@lists.xmission.com
Sent: Wednesday, March 20, 2002 6:24 PM
Subject: Re: [CANSLIM] MicroCaps
Gene,
Micro and really, really small "small caps" are my favorites. I review daily a list of stocks hitting new highs that day, using Marketwatch at the CBS site. My basic parameters are volume of 1000 to 500,000 shares traded that day, price from $2 to $20, market cap up to several hundred million (depending on your preference), and trailing PE of 1 to 100.
For CANSLIM criteria, I want RS at least over 80, but preferably well over 90. I will accept EPS ranking down to about 50 or so, but only if I can vocalize why earnings per share is ready to accelerate. I personally prefer funds ownership in the low single digits to zero (I like to be smarter and quicker than the average small cap fund manager), with management ownership well into double digits. I have had some of my better results with management owning over 50% of the issue.
While I like ROE well into double digits, I have had many winners where it was in the low single digits when I first bought it.
Tom Worley
stkguru@bellsouth.net
AIM: TexWorley
----- Original Message -----
From: Gene Ricci
To: canslim@lists.xmission.com
Sent: Wednesday, March 20, 2002 6:57 PM
Subject: [CANSLIM] MicroCaps
I would like to find fundamentally sound microcap stocks... any hints on DGO criteria... ?
Thanks,
Gene
----- Original Message -----
From: Tom Worley
To: canslim@lists.xmission.com
Sent: Wednesday, March 20, 2002 5:25 PM
Subject: Re: [CANSLIM] SMD
Good luck, I saw it on many of my daily lists, but also could not convince
myself that Karaoke (shudder) was making a come back.
Guess I should have dug deeper despite my lack of singing talent.
Tom Worley
stkguru@bellsouth.net
AIM: TexWorley
----- Original Message -----
From: "Ricardo Bekin" <rbekin@hotmail.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, March 20, 2002 6:02 PM
Subject: Re: [CANSLIM] SMD
HI Tom, I thought it might have been an acquisition, but then I dug into the
financials and listened to the latest conference call, and the bottom line
is it was growth, pure and simple (I personally don't like Karaoke, but I
guess there's a whole lot of wannabe Wayne Newtons and Spice Girls out
there)
SMD thinks they can continue to grow in the US (it would be great if they
picked up the WalMart account) and then will also expand in Europe
by the way, I had some other issues with the Balance Sheet, like the huge
spike in A/R, but the CC cleared that too (they have already collected on
most or all of the receivables)
"sounds" good to me
----- Original Message -----
From: "Tom Worley" <stkguru@bellsouth.net>
To: <canslim@lists.xmission.com>
Sent: Wednesday, March 20, 2002 4:49 PM
Subject: Re: [CANSLIM] SMD
> Ricardo,
>
> I note that the Sep and Dec quarters tripled sales, and earnings went
> through the roof. I would want to know that whatever happened to cause
this
> (maybe an acquisition?) will continue in the future.
>
> Tom Worley
> stkguru@bellsouth.net
> AIM: TexWorley
> ----- Original Message -----
> From: "Ricardo Bekin" <rbekin@hotmail.com>
> To: "CANSLIM" <canslim@lists.xmission.com>
> Sent: Wednesday, March 20, 2002 1:13 PM
> Subject: [CANSLIM] SMD
>
>
> SMD is close to a new high today, on 1.5 times ADV, it just keeps humming
> along (sorry...)
>
> I liked the fundamentals and bought it earlier this month (before the
split)
>
> Ricardo
>
> -
> -To subscribe/unsubscribe, email "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim". Do not use quotes in your email.
>
>
>
>
> -
> -To subscribe/unsubscribe, email "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim". Do not use quotes in your email.
>
-
-To subscribe/unsubscribe, email "majordomo@xmission.com"
-In the email body, write "subscribe canslim" or
-"unsubscribe canslim". Do not use quotes in your email.
-
-To subscribe/unsubscribe, email "majordomo@xmission.com"
-In the email body, write "subscribe canslim" or
-"unsubscribe canslim". Do not use quotes in your email.
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<DIV><FONT size=2>Its JMHO, but rather than a high RS, you might consider
looking for lack of meaningful resistance. If a stock has been flat-lining, but
is still within 20% of its high, and its relative valuation is low, volume will
make it start climbing even faster than stocks that have a high RS.
</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>If M has been in a prolonged, broad-based decline, all these
stocks will have a high RS anyhow. But, M bottmed out quite a long time ago now,
and there have been a lot of stocks climbing since 10/01/01 - so I periodically
see a nice flat base with an RS between 60 and 80.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Also, with microcaps, you get fabulous volume clues as to when
a big rise might start. If the last 4 days of volume have been 300%+ of the
50-day average before the volume kicked in, then you want to take a really close
look at the fundies, outlook, and relative peer-group valuation.</FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV><FONT size=2>Ian</FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=ltr
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:genr@swbell.net" title=genr@swbell.net>Gene Ricci</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:canslim@lists.xmission.com"
title=canslim@lists.xmission.com>canslim@lists.xmission.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Wednesday, March 20, 2002 9:45
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] MicroCaps</DIV>
<DIV><BR></DIV>
<DIV><FONT face="Comic Sans MS">Tom, I set the following scan in DGO and
uncovered 73 gems, was totally surprised at how high the EPS & RS ratings
are. Thanks for your help, just what the doctor ordered.</FONT></DIV>
<DIV><FONT face="Comic Sans MS">Gene</FONT></DIV>
<DIV><FONT face="Comic Sans MS"></FONT> </DIV>
<DIV>
<TABLE align=center border=0 cellPadding=2 cellSpacing=2 width=550>
<TBODY>
<TR>
<TD vAlign=top><FONT size=2>Earnings Per Share (EPS) Rating</FONT></TD>
<TD align=left vAlign=top><FONT size=2>Greater than or equal to:
50</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>Relative Price Strength (RS)
Rating</FONT></TD>
<TD align=left vAlign=top><FONT size=2>Greater than or equal to:
80</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>% of Stock Owned by Mutual Funds</FONT></TD>
<TD align=left vAlign=top><FONT size=2>Less than or equal to:
10</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>Current Price</FONT></TD>
<TD align=left vAlign=top><FONT size=2>From 2.000 to 20.000</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>Current 50-Day Average
Volume(1000)</FONT></TD>
<TD align=left vAlign=top><FONT size=2>From 1 to 500</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>ROE (Latest Fiscal Year Reported)</FONT></TD>
<TD align=left vAlign=top><FONT size=2>Greater than or equal to:
10</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>Current Trailing 12 Month P/E</FONT></TD>
<TD align=left vAlign=top><FONT size=2>From 1 to
100</FONT></TD></TR></TBODY></TABLE><FONT face="Comic Sans MS"
size=3></FONT></DIV>
<BLOCKQUOTE dir=ltr
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style="FONT: 10pt arial"><FONT face="Comic Sans MS"
size=3></FONT> </DIV>
<DIV style="FONT: 10pt arial"><FONT face="Comic Sans MS"
size=3></FONT> </DIV>
<DIV style="FONT: 10pt arial"><FONT face="Comic Sans MS"
size=3></FONT> </DIV>
<DIV style="FONT: 10pt arial"><FONT face="Comic Sans MS"
size=3></FONT> </DIV>
<DIV style="FONT: 10pt arial"><FONT face="Comic Sans MS"
size=3></FONT> </DIV>
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:stkguru@bellsouth.net" title=stkguru@bellsouth.net>Tom
Worley</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:canslim@lists.xmission.com"
title=canslim@lists.xmission.com>canslim@lists.xmission.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Wednesday, March 20, 2002 6:24
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] MicroCaps</DIV>
<DIV><BR></DIV>
<DIV><FONT face=Arial>Gene,</FONT></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV><FONT face=Arial>Micro and really, really small "small caps" are my
favorites. I review daily a list of stocks hitting new highs that day, using
Marketwatch at the CBS site. My basic parameters are volume of 1000 to
500,000 shares traded that day, price from $2 to $20, market cap up to
several hundred million (depending on your preference), and trailing PE of 1
to 100.</FONT></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV><FONT face=Arial>For CANSLIM criteria, I want RS at least over 80, but
preferably well over 90. I will accept EPS ranking down to about 50 or so,
but only if I can vocalize why earnings per share is ready to accelerate. I
personally prefer funds ownership in the low single digits to zero (I like
to be smarter and quicker than the average small cap fund manager), with
management ownership well into double digits. I have had some of my better
results with management owning over 50% of the issue.</FONT></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV><FONT face=Arial>While I like ROE well into double digits, I have had
many winners where it was in the low single digits when I first bought
it.</FONT></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV>Tom Worley<BR><A
href="mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:
TexWorley</DIV>
<DIV style="FONT: 10pt arial">----- Original Message -----
<DIV style="BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A
href="mailto:genr@swbell.net" title=genr@swbell.net>Gene Ricci</A> </DIV>
<DIV><B>To:</B> <A href="mailto:canslim@lists.xmission.com"
title=canslim@lists.xmission.com>canslim@lists.xmission.com</A> </DIV>
<DIV><B>Sent:</B> Wednesday, March 20, 2002 6:57 PM</DIV>
<DIV><B>Subject:</B> [CANSLIM] MicroCaps</DIV></DIV>
<DIV><BR></DIV>
<DIV><FONT face="Comic Sans MS">I would like to find fundamentally
sound microcap stocks... any hints on DGO criteria... ?</FONT></DIV>
<DIV><FONT face="Comic Sans MS"></FONT> </DIV>
<DIV><FONT face="Comic Sans MS">Thanks,</FONT></DIV>
<DIV><FONT face="Comic Sans MS">Gene</FONT></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:stkguru@bellsouth.net" title=stkguru@bellsouth.net>Tom
Worley</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:canslim@lists.xmission.com"
title=canslim@lists.xmission.com>canslim@lists.xmission.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Wednesday, March 20, 2002 5:25
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] SMD</DIV>
<DIV><BR></DIV>Good luck, I saw it on many of my daily lists, but also
could not convince<BR>myself that Karaoke (shudder) was making a come
back.<BR><BR>Guess I should have dug deeper despite my lack of singing
talent.<BR><BR>Tom Worley<BR><A
href="mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:
TexWorley<BR>----- Original Message -----<BR>From: "Ricardo Bekin" <<A
href="mailto:rbekin@hotmail.com">rbekin@hotmail.com</A>><BR>To: <<A
href="mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>><BR>Sent:
Wednesday, March 20, 2002 6:02 PM<BR>Subject: Re: [CANSLIM]
SMD<BR><BR><BR>HI Tom, I thought it might have been an acquisition, but
then I dug into the<BR>financials and listened to the latest conference
call, and the bottom line<BR>is it was growth, pure and simple (I
personally don't like Karaoke, but I<BR>guess there's a whole lot of
wannabe Wayne Newtons and Spice Girls out<BR>there)<BR><BR>SMD thinks they
can continue to grow in the US (it would be great if they<BR>picked up the
WalMart account) and then will also expand in Europe<BR><BR>by the way, I
had some other issues with the Balance Sheet, like the huge<BR>spike in
A/R, but the CC cleared that too (they have already collected on<BR>most
or all of the receivables)<BR><BR>"sounds" good to me<BR><BR>-----
Original Message -----<BR>From: "Tom Worley" <<A
href="mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A>><BR>To:
<<A
href="mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>><BR>Sent:
Wednesday, March 20, 2002 4:49 PM<BR>Subject: Re: [CANSLIM]
SMD<BR><BR><BR>> Ricardo,<BR>><BR>> I note that the Sep and Dec
quarters tripled sales, and earnings went<BR>> through the roof. I
would want to know that whatever happened to cause<BR>this<BR>> (maybe
an acquisition?) will continue in the future.<BR>><BR>> Tom
Worley<BR>> <A
href="mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>> AIM:
TexWorley<BR>> ----- Original Message -----<BR>> From: "Ricardo
Bekin" <<A
href="mailto:rbekin@hotmail.com">rbekin@hotmail.com</A>><BR>> To:
"CANSLIM" <<A
href="mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>><BR>>
Sent: Wednesday, March 20, 2002 1:13 PM<BR>> Subject: [CANSLIM]
SMD<BR>><BR>><BR>> SMD is close to a new high today, on 1.5 times
ADV, it just keeps humming<BR>> along (sorry...)<BR>><BR>> I
liked the fundamentals and bought it earlier this month (before
the<BR>split)<BR>><BR>> Ricardo<BR>><BR>> -<BR>> -To
subscribe/unsubscribe, email "<A
href="mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>
-In the email body, write "subscribe canslim" or<BR>> -"unsubscribe
canslim". Do not use quotes in your
email.<BR>><BR>><BR>><BR>><BR>> -<BR>> -To
subscribe/unsubscribe, email "<A
href="mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>
-In the email body, write "subscribe canslim" or<BR>> -"unsubscribe
canslim". Do not use quotes in your email.<BR>><BR><BR>-<BR>-To
subscribe/unsubscribe, email "<A
href="mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In
the email body, write "subscribe canslim" or<BR>-"unsubscribe
canslim". Do not use quotes in your
email.<BR><BR><BR><BR><BR>-<BR>-To subscribe/unsubscribe, email "<A
href="mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In
the email body, write "subscribe canslim" or<BR>-"unsubscribe
canslim". Do not use quotes in your
email.<BR></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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